A listed company has a Whole time Director since 2012. As per Appiontment, he is entitled to Rs.3.50 Lacs per month. Subsequently, the Company is not well and all the employees including MD wants to relinquish salaries upto 30%. But this WTD not given his consent for reduction of salary. THERE WAS NEITHER NOMINATION & REM. COMMITTEES RECOMMENATION NOR BOARD APPROVAL FOR SUCH REDUCTION. The Company has reserves more than 100 Crores... Is the reduction valid ?.
According to me, the WTD is entitled for his full salary, as there was no legally valid resolution was passed.... Others views please.
Regards
Kiran
CAclubindia
